Question
How should revenue be recognised for each of the following independent cases? i. In December 2009, a customer purchased for cash a television set from
How should revenue be recognised for each of the following independent cases?
i. In December 2009, a customer purchased for cash a television set from Media House Bhd for RM6,600. He wanted it delivered to his parents on 10 January 2010 as a gift for their wedding anniversary.
ii. Malacca Traders deals in antiques. A customer agreed to buy a piece of antique and agreed to pay 10% of the price over a ten-month period. The customer will take delivery only upon full payment being made.
iii. Electronic Bhd sells goods for cash and on interest-free instalment basis. A customer bought an electronic gadget at a net price of RM5,000 and payment is made in ten instalments of RM500 per month.
iv. High Vision accepted an assignment to arrange for a syndicated loan for Desperado Bhd on 1 December 2009. The loan was secured on 6 April 2010. The fee charged by High Vision was 2% of the loan value.
v. On 1 December 2005, Flower Aglo received orders to decorate a palace for a wedding at a cost of RM200,000. The wedding will be held on 28 March 2006. As per Accounting Standard and GAAP Revenue recognition will be in the point of actual transaction is happening whether receiving of money Orr service or not whichever is case .
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